Tax Credit Payment & OR

khanji17

Hi All,

This is my first post here but I have been reading this forum for months and have got alot of help from all the people here.

Me and my OH went on 19th July 2010, our phone interview has been done and OR hasn't contacted us yet, but we will probably receive an IPA soon.

I have recieved about £1685 back in the past week from Tax Credits on their latest evaluation. Ill be informing my OR about this today or on Monday. What I wanted to ask was that would this all be claimed by the OR so can they just claim 70% of the total amount. Also can I talk my way out of paying it if she agrees? Like if I tell her what I would like to do with it if I get to keep it?

Thanks in advance for all your help

skylight

The OR cannot take any of it, but you must still inform them.


31.7.10 Arrears of benefits received post bankruptcy (August 2009)

Occasionally, where a bankrupt is in receipt of benefits he/she may receive arrears of benefit payments as a post bankruptcy receipt (prior to discharge). Where this happens, because state benefits are excluded from the bankruptcy, the arrears of benefit (including tax credits ) cannot be claimed as a vested asset because they are state benefits.

It may however be possible to claim the monies under the income payments provisions of the Insolvency Act by agreeing a single payment agreement with the bankrupt as a voluntary contribution.

N.B. official receivers must ensure when dealing with arrears of benefit in this way as a voluntary contribution, that the payment does not represent an overpayment, which has been paid to the bankrupt post bankruptcy and which can be recovered after discharge in specific circumstances.